Income inequality is destabilizing and "responsible for the divisions in the country," CEO and chairman of Goldman Sachs Lloyd Blankfein said on "CBS This Morning" Tuesday.

"The divisions could get wider," Blankfein said. "If you can't legislate, you can't deal with problems. [If] you can't deal with problems, you can't drive growth and you can't drive the success of the country. It's a very big issue and something that has to be dealt with."

He said one way to deal with it would be to "make the pie grow."

"Too much of the GDP over the last generation has gone to too few of the people," he said.